Wael Sawan succeeds Ben van Deurden. As of January 1, 2023, he will become the new CEO of Shell. He will also join the company’s board of directors while Ben van Beurden will serve as an advisor to the board until June 30, 2023.
Ben van Beurden, a popular CEO
Shell Chairman praises Ben ver Beurden. He spent 39 years with the company. He states:
“Ben can be very proud of his 39-year career with Shell, culminating in nine years of outstanding leadership.”
In addition, it emphasizes its role in the group’s energy transition. Shell released its Powering Progress strategy in February 2021. The company was quick to put in place certain measures in this direction. Ben ver Beurden’s legacy will remain for decades.
In addition, Sir Andrew Mackenzie praises his qualities as a CEO. In fact, he leaves behind a “financially strong and profitable” company.
The COVID-19 pandemic led to a collapse in energy demand in early 2020. As a result, Shell has reduced its dividend to about $15 billion. A first for the company since World War II, when Shell recorded the largest dividend in the world.
Nevertheless, the company was able to recover. In July, Shell posted record results. The company announces a profit of $11.5 billion in the second quarter.
For his part, Ben van Beurden says he is honored to have been able to “serve Shell” for all these years. In fact, he began his career as an LNG design engineer.
He expresses his full confidence in his successor, Wael Sawan. He comments:
“I have great confidence in Wael as my successor. He is an intelligent, dynamic and principled leader who I know will continue to serve Shell with conviction and dedication. I wish him and his family the best on the journey ahead.”
Wael Sawan, symbol of Shell’s turnaround
Sir Andrew Mackenzie, Chairman of Shell, welcomes the appointment of Wael Sawan. He states:
“Wael Sawan is an exceptional leader, with all the qualities needed to safely and profitably lead Shell through its next phase of transition and growth. His track record of commercial, operational and transformational success reflects not only his broad and deep experience and understanding of Shell and the energy sector, but also his strategic clarity. He combines these qualities with a passion for people, enabling him to bring out the best in those around him. The outcome of the succession process managed by the Board of Directors has resulted in the appointment of an outstanding CEO and has demonstrated the strength and depth of Shell’s leadership talent. I look forward to working with Wael to accelerate the implementation of our strategy.”
In fact, his appointment symbolizes a real turning point in the company’s strategy. Wael Sawan will have the heavy task of continuing the work of his predecessor on energy transition. In fact, Shell is targeting Net Zero by 2050. Thus, the company intends to move away from fossil fuels.
Wael Sawan, for his part, expresses his enthusiasm. He comments:
“It has been a privilege to work alongside Ben and I am honored to succeed him in leading this great company. I look forward to channeling the pioneering spirit and passion of our incredible people to address the immense challenges and opportunities presented by the energy transition. We will be disciplined and value-driven as we work with our customers and partners to deliver the reliable, affordable, cleaner energy the world needs.”
Energy transition, a core theme of Shell’s strategy
Energy transition will need to be a real focus for Shell. Last year, the company lost a landmark lawsuit against climate activists. A Dutch court then ordered Shell to reduce its emissions as soon as possible.
Today, Shell is making the transition. However, the company still has a strong presence in the oil and gas industry. Greenpeace states:
“He needs to declare that Shell will massively shift its capital spending to renewables in the near term.”
The task could be complicated for Wael Sawan. In fact, the latter was the head of Shell’s oil and gas production business. However, it already has a foot in renewable energy. He now oversees the low-carbon energy and gas activities.
On this point, analysts at RBC Capital comment:
“The change is likely to be more of a continuation than a revolution of the strategy van Beurden put in place.”
Wael Sawan must reassure investors
Wael Sawan will have to reassure Shell’s investors.
Sophie Lund-Yates, an analyst at Hargreaves Lansdown, explains:
“Investors will be looking for assurances on dividend security and renewable energy strategy.”
Shell’s London-listed shares have been on the rise since the beginning of the year. They gained more than 44% in value. These were up slightly in early trading.
